Energy #18 Legislative focus

ANRE has proposed a Hydrogen Code that formalises the general regulatory framework already required under Article 156(1) of the Energy Law.

The Code applies strictly within the powers assigned to ANRE by primary legislation. It does not create new categories of authorisations or licences, designate operators of dedicated hydrogen networks, or introduce tariffs, access regimes or technical requirements in areas where ANRE has not received an express legal mandate.

Existing ANRE regulations will continue to apply within their current scope. This includes ANRE Order No. 63/2023, which governs the transformation or conversion of natural gas distribution systems for hydrogen use.

The Code also establishes the criteria ANRE will apply when issuing the mandatory prior opinion required under Emergency Ordinance No. 163/2022 for technical regulations concerning hydrogen. Applying these criteria does not transfer powers from other authorities to ANRE or make voluntary technical standards legally binding.

The proposal follows the draft joint order published by the Ministry of Development and the Ministry of Energy in the previous week. That initiative concerns risk assessment during urban planning and construction authorisation. The ANRE proposal addresses the regulatory and technical responsibilities falling within ANRE’s existing mandate.

The Code will be updated as primary legislation develops, including after Romania transposes the EU rules governing the internal markets for renewable gas, natural gas and hydrogen.

The Code does not create new market obligations or resolve the missing rules for dedicated hydrogen networks. Its immediate purpose is to clarify how existing legislation and ANRE powers apply to hydrogen activities.

For companies, this provides a more structured reference point for identifying the applicable authorisations, technical rules and prior opinions. It may reduce uncertainty when several existing energy regulations apply to the same project.

However, the main regulatory gaps remain. Dedicated network operators, hydrogen-specific licences, tariffs and access arrangements will require changes to primary legislation before ANRE can regulate them.

The proposal therefore consolidates the current framework associated with PNRR Milestone 126, but does not establish the future hydrogen market model.

The Ministry of Energy approved the applicant guide for the state aid scheme supporting investments in stand-alone battery electricity storage installations through the Modernisation Fund.

The scheme is available to microenterprises, SMEs, large companies and newly established companies developing individual installations of at least 1 MW, connected to the transmission or distribution network.

Applications will be submitted through MySMIS 2021 before the start of works. Projects will initially be ranked according to the amount of aid requested per MWh of installed storage capacity and then assessed in ranking order, within the available budget.

Eligible costs mainly include site preparation, utilities, construction, installation and storage equipment. Land acquisition, project design, studies, permits, connection costs, VAT and operating expenditure are not eligible.

Beneficiaries may request prefinancing of up to 20% of the grant, subject to a bank guarantee.

The order was published by the Ministry of Energy and will enter into force upon publication in the Official Gazette. The Ministry will announce the launch and application period separately.

Companies can begin preparing their technical documentation, budgets, site rights and connection documents, but cannot submit applications until the call is formally launched.

Because projects will be ranked according to the aid requested per MWh, applicants must balance the level of public support requested against project costs and their chances of selection. They must also secure separate financing for connection, design, permitting, VAT and other ineligible expenditure.

Parliament adopted a law increasing the partial payment available for electricity and natural gas suppliers’ reimbursement claims from 40% to 60%.

Suppliers that previously received 40% may request the additional 20% through a supplementary application submitted within 30 days after the law enters into force.

However, Parliament removed the requirement for the partial payment to be made within ten working days after the Ministry of Finance transfers the funds. The law therefore establishes the percentage payable but no longer sets a deadline for suppliers to receive the money.

If ANRE subsequently validates an amount below the partial payment already received, the supplier must return the difference within ten working days after notification. Delays trigger interest and penalties under the Fiscal Procedure Code.

The Ministry of Energy and the Ministry of Labour must issue a joint order within 30 days after the law enters into force, setting the procedure for verifying, validating and paying reimbursement claims. The law was sent to the President for promulgation on 14 August.

Increasing the partial payment to 60% could reduce the amounts suppliers must finance while awaiting final validation. However, removing the payment deadline weakens that benefit because suppliers still cannot predict when the money will be received.

The final mechanism is also asymmetric. Public authorities have no statutory deadline for making partial payments, while suppliers must return any difference within ten working days and face fiscal charges for delays.

The practical liquidity effect will depend on the availability of budget funds and the payment procedure established through the joint implementing order.